How Do You Get a Gold IRA?
Gold IRAs provide an innovative way to diversify retirement savings while reaping the same tax advantages as traditional IRAs.
The IRS provides specific regulations pertaining to precious metal IRAs, such as purity and manufacturing standards. Gold IRA companies adhere to these guidelines and offer products that comply with IRS regulations.
1. Find a Self-Directed IRA Custodian
Custodians are financial institutions or trust companies that manage self-directed individual retirement account (SDIRA) investments to ensure compliance with IRS rules. Custodians typically accept contributions, record transactions, process tax forms, provide statements to clients, assist individuals in understanding prohibited transactions, as well as help explain other rules to individuals.
A good SDIRA custodian should also have knowledge of all of the assets available to investors, including precious metals, private placements and real estate investments. Some of these have different tax implications than more traditional IRA investments like real estate; the custodian should be able to explain these variances to customers.
Find a custodian that charges reasonable fees for its services, such as maintenance fees, load fees and commissions on trades. Such costs could reduce the funds available for investing within your IRA account; NerdWallet’s ratings of online brokers and robo-advisors take this into consideration when scoring each provider.
2. Select a Precious Metals Dealer
Gold IRAs differ from traditional individual retirement accounts (IRAs) by providing you with access to precious metals as an asset class. All IRS rules still apply; however, you’ll require both an approved precious metals dealer for your purchases as well as an official custodian to manage and oversee your account.
When evaluating a dealer, consider their products, services and fees. Look for transparent pricing as well as customer education that’s free from bias. Likewise, be wary if there are any lawsuits or bankruptcies against the dealership which might tarnish its integrity or reputation.
Make sure that the dealer accepts your preferred method of transfer. Most online forms will request your email and phone numbers so they can contact you to verify details, while depending on the company, you may receive your kit either electronically or by post.
3. Fund Your Account
An investment in gold offers benefits not available from traditional stocks, bonds, mutual funds and exchange-traded funds (ETFs). Physical assets like gold may not provide dividends or yields but could still increase over time in value.
If you want to add precious metals to your IRA, the first step should be obtaining a free kit from a reliable company. You can do this either online via filling out an online form or calling them and verifying your contact info.
Once you select a company, they’ll send your kit through either email or mail delivery. Many also offer online tools that make selecting items easier. Keep in mind that accounts require an annual membership fee in addition to additional storage and insurance fees that vary widely by provider; some even advertise they don’t charge fees!
4. Monitor Your Investments
When investing in precious metals IRAs, the IRS imposes specific rules regarding which metals may be included and how they must be stored. Your IRA custodian will help guide you through these regulations to ensure your investment remains compliant.
Many gold IRA companies provide free information kits that provide an overview of investing in precious metals. Some offer incentives, such as free shipping or physical precious metals included with the kit; others may provide videos or audio guides to explain how a precious metals IRA works.
Although these resources can be useful, you should always seek the advice of an accredited financial professional before making decisions regarding your retirement savings. Be wary of companies using high-pressure sales tactics or trying to convince you mainstream institutions are unsafe; and diversification should always be kept in mind by allocating no more than 5- 10% of your portfolio to precious metals.
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